Saving Tips for Small Salaries

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He was an employee, not married, 29 years old, has an income of $ 450 per month. But every month there is no money he could save. He also has a home loan installment of $ 200 per month for 15 years. He try to find the answer, with the online finance consulting.

Then how financial solutions that can be recommended for him? Here are the answers:

Of course you could save. Ideally, every month we are saving 10 percent of total revenue. So, if your income of $ 450, then ideally every month saving you $ 45.

And this is a good start, because you already started thinking of saving. Saving is necessary, because life goes on. And the future need to be prepared from now.

Actually, there are no reason for you not to save, especially because the income of small or large expenditures. Believe it or not, the greater of revenue it will tend to the greater expense. Thus, the problem does not depend on the size of income. It is about your own. 

If now there is no savings each month that you saved, you can go build the saving habit. Ideal savings rate reached 10 percent of revenue may be a little difficult at first. To that end, this can be done gradually.

For the first month, for example you only need to set aside $ 10. This figure should be classified as not too large and more easily achieved. Slowly, the habit of saving will wake up and even deeply embedded in you. The amount of savings each month can be increased to achieve the ideal figure of 10 percent.

Not that, if you have set aside 10 percent of income means you are saving enough.The bigger that you can tube the better. It did not as easy as turning the palm of the hand. However, various means are available to facilitate saving, so the goal is reached.

I am sure, each received a salary, $ 200 will automatically be paid in advance to the bank and the rest of your consumption. Well, this way you can employ to increase your savings. Assign a certain number each month as savings.

If you set a $ 45 per month, net of repayments $ 200, money spending will be $ 205.Keep in your mind, you have $ 205 for groceries that month and you will automatically adjust spending and its share of these expenditures. Tabunglah before shopping. Not saving if there are remaining after shopping, it's good old-fashioned and ineffective.

Expenditures are divided into two major categories, namely fixed and variable.Fixed expenses are expenditures that are the same size and 'essential'. In your case, fixed expenses are $ 200 for the mortgage.

Expenditure variable amount of expenditure that can vary, for example pulses, entertainment, clothing, and so on. To make savings, variable costs should be considered carefully, what to keep and what expenditure is not necessary.

In this case, separate the wants and needs is very important. In terms of income, wages may rise only 10-15 percent per year, while the need of living continues to rise. If you are planning to build a family, of course, automatically your expenses also increased.

Make savings may not be enough, for that you need to start thinking to earn income, either by increasing the competence or start entrepreneurship.

Before saving for specific financial goals, should emergency fund needs to be met first. Ideally, the magnitude of these funds between 6-12 times the monthly expenditure. Thus, if there is an undesirable thing then you can use to cover the cost of funds for the unexpected.

At worst, if you lose your job, then you have enough time and resources to meet all expenses until you get an income again. Let's go saving!